Secteur Distribution & Retail Eurogroup Consulting
A sector facing radical upheaval: is the demise of high-street stores inevitable?
For a number of years, operators and observers in the retail industry have witnessed the irresistible rise of Internet in consumer habits. Internet affects the entire customer journey: the search for information (a vast majority of consumers prepare their purchases online), the act of purchase itself and the subsequent sharing of opinion and comments on social networks.
Act II of this surge (which impacts will probably be even more conspicuous) has emerged with the explosive spread of mobility tools: the Internet is now evermore at the consumer's fingertips.
Physical and online retail are two worlds that do not apply the same codes and face the same constraints, but are linked by the consumer experience: customers wish to purchase online and immediatly share news of their purchase, follow their order on their smartphone, collect it from a store (‘click and collect’) and, if necessary, return their item to the retailer’s shops.
Redesigning the customer itinerary: what should the response be to consumer 3.0 expectations?
To manage the boom in digitization, retailing operators must implement an omnichannel customer itinerary. E/m-commerce has become a channel that complements rather than competes with stores. The main issue is to enable a continuous experience for customers with increasingly complex cross-channel and multi-device itineraries.
In this omnichannel strategy, retailers must precisely determine the role of each channel in the customer 3.0 itinerary and, therefore, question the store's business model. Stores are not doomed to a future of ‘showrooming’ or even extinction! The return of the local shop and the development of new concepts such as drive, pop-up stores, concept stores, etc., are proof of this; retailers are still primarily shopkeepers.
Redesigning the store experience: how can stores convey an enhanced promise of value?
Today, stores can no longer settle for simply selling products. New possibilities are emerging, which have the potential to revive the ‘enchantment’ of points of sale and offer new experiences to consumers. High-street retail must refocus on the individual and human emotions, appeal to their senses and fuel their imagination, while ensuring brand consistency across the different channels.
Points of sale must also introduce digital technology to adapt to new 3.0 modes of consumption and provide access to information in the store: deployment of terminals, sales assistants trained and equipped with tablets allowing them to check customer records for the entire retail chain, regardless of the channel.
At the same time, retailers must also work on Social Commerce (management of net-user opinions on the site, deployment of commercial links to social networks) to upgrade their website from self-service positioning to choice guidance, as in a high-street store.
Revising organizational models: what are the issues involved in the transformation of operational models?
Beyond the changes perceived by the customer, all these developments result in a need for retailers to question their operational models on several points including the following: improved stock selection and replenishment, implementation of a cross-channel logistics master plan, modification of headquarters-network organizations, cultural transformation, HR, etc. This will happen against a background of very tight cost control to tackle increased international competition.
L'offre Eurogroup Consulting - Distribution & Retail Eurogroup Consulting
- A flexible retail chain strategy.
- Development of new store formats and concepts.
- Support for the design of an omnichannel strategy and analysis of impacts on departments.
- Steering and conduct of digital projects and digital-transformation programmes (processes, tools).
- Preparation of an in-store digital master plan.
- Framing of a digital portfolio with integrated offers (coupons, loyalty, payment).
- E-commerce site upgrade (cross-channel logic).
- Acceleration of e-business: identification of the ambition and plan of action.
The strategic partnership we have formed with the La Javaness start-up and digital-innovation accelerator brings us the benefit of established expertise in business and organisational transformation in the digital age: Service Design, Big Data, Digital Learning, etc.
- Management of a new customer-relations program: complaint processing, in-store reception policy, customer-satisfaction measurement system, etc.
- Four-year CRM strategy and roadmap.
- Improvement of customer service: customer promise, in-store strategy and service offer, launch of new services, customer services department, dissemination of a service culture and posture.
- Formalization of the physical and digital customer itinerary: identification of key moments, related customer expectations and the necessary responses (connected store).
Transformation of networks and operational performance
- Assessment of a network’s organisational maturity to compare points of sale.
- Transformation of stores: changes of brand, of organization, of information system and of networks.
- Planning of territorial networking and the structuring / segmentation of the network.
- Improvement of the stores’ commercial performance: results analysis, competitor benchmarks, operational alignment (store format / stock selection, opening hours, team design).
Supply Chain, Logistics / Lean Management
- Drawing up of the logistics master plan and network optimisation (national, international, by sector, etc.).
- Optimisation of logistics circuits and flows in a multichannel environment.
- Planning and implementation of tomorrow’s warehouse: size, organisation, layout, addressing, human resources, equipment, construction monitoring.
- Optimisation of warehouse flows (cross-docking, etc.) by product type (dry, fresh and frozen foods and non-food) and organisational impacts.
- Planning of the strategy to shift from direct store flows to warehouse flows: route, sequencing, financial potential and organisational impacts on stores and warehouses.
- Reshaping of the logistics data-management process from end to end: collection to updating.
Team mobilization and support (since the customer experience is inseparable from the staff experience)
- Support for digital transformation implying a cultural and HR transformation within the company: development of organizations and relations between departments, shift to a more cooperative culture, acquisition of new skills, etc.
- Cultural transition ‘from a product culture to a service culture’ (posture, commercial and customer sense).
- LEAN Management and Marketing coaching.